This invention relates generally to manufacture and activation of metal-containing catalysts suitable for use in hydrocarbon conversion reactions. More particularly, this invention concerns a method for making a metal- or metal carbide-metal oxide catalyst especially useful for promoting hydrogenation reactions in general and the methanation reaction in particular. A method of this type is described in U.S. Pat. No. 4,071,473, issued Jan. 31, 1978. In that method, catalysts are prepared from an alloy of one or more of the Group VIII transition metals with yttrium or a rare earth metal. The alloy is ground to the desired particle size and is thereafter reacted with a gas containing carbon monoxide and hydrogen to form an intimate physical admixture of the Group VIII metal or its corresponding carbide with the oxide of yttrium or the rare earth metal. The present invention relates to a similar method which is applicable to metals other than rare earths and yttrium.